The Each Way bet is ideal if you fancy a horse to do well, but not necessarily to win. When you bet ‘Each Way' you are actually having two bets in one, the first bet is that your horse will win, the second bet is that your horse will be placed 2nd, 3rd or in fields of 16+ runners, even a 4th place will win you money. You can't bet on a horse each way if the race has less than 5 runners and a race with 5 ~ 7 runners will only pay out on a 2nd place.
It's also worth noting that if your horse doesn't win but is placed (usually 2nd, 3rd) you will only get 1/4 or 1/5 of the quoted odds. Which means you shouldn't back a horse each way unless it's odds are over 5-1, because you could never win enough to cover your original stake at odds of 5-1 or shorter.
You can back ‘Each Way' with all online bookmakers, if you want to know how to fill in a betting slip for an each way bet you can click the small thumbnail in this paragraph. It shows you the correct way to fill in the bookmakers slip for each way betting.
Remember that an each way bet is actually made up of two bets, so if you bet £5 each way, your total bet cost will be £10 (£5 on the win and £5 on the place)